Global Stocks

European stocks closed moderately higher Tuesday, with shares of defense companies among the notable winners, as investors prepared to hear about U.S. President Donald Trump's plans to boost growth in the world's largest economy.

The Dow on Tuesday halted its record-setting streak as investors remained cautious ahead of a speech by President Donald Trump that could determine whether the market's recent surge will be justified by government policy. Since the election, investors had been betting that Trump's policies on taxes and regulation will accelerate economic growth and boost corporate profits. However, few legislative details or timing have been forthcoming, something analysts say is increasingly needed to sustain the market's advances.

Hawkish comments from U.S. Federal Reserve officials have increased the likelihood of a March rate increase, sending the dollar, sovereign-debt yields and Japanese stocks higher amid U.S. President Donald Trump's speech to Congress. Many markets in the region had been quiet in recent days as investors took a wait-and-see attitude ahead of Trump's address.